In Virginia, it’s not just a scam, it’s a crime!

Top Reasons Internet Loans Are Bad

It is a class six felony in Virginia to offer a payday loan without a license.

Even without a license, the Virginia Payday Loan Act states internet payday lenders must still follow Virginia rules and regulations for payday loan. Internet payday lenders do not do this.

Internet Installment and Line of Credit loans contracts are usually void as well.

2. Your personal Information including your social security number get sold as an information commodity indefinitely.

Not only lenders buy that information, but also scam artists, putting you at a much higher risk of identity theft.

Just applying for the loans can result in fake debt collection harassment calls up to ten years after the loan – people who successfully pay off the loans can still be subject to this kind of harassment.

3. Changing and Abusive Loan Terms.

Lenders often change the terms of the loan before notifying the borrower, or without any notification at all.

Mandatory electronic (ACH) withdrawal for loan payments directly from bank accounts. Once this is authorized, many banks will not honor a withdrawal of authorization, even if the lender was notified in writing correctly under NACHA Rules.

Mandatory Binding Arbitration Clauses make it hard for an individual borrower to get relief if the lender has violated the loan contract, an all too often practice.

Some loans are originated with one company and sold to another, without any notice to the borrower – another entity simply begins withdrawing money from the borrower’s bank account.

4. Intense and Abusive Debt Collection Harassment.

There are many abuses and many scams associated with internet loan debt collection harassment including excessive phone calls and threats of arrest and criminal prosecution.

Family, friends, and even employers are contacted and harassed as well.